Application of the Theory of Planned Behavior (TPB), or parts of it, is common in entrepreneurship research to predict intention to start a new venture, entrepreneurial intention. Very limited research has examined the relationship between entrepreneurial intentions and the subsequent enactment of those intentions. Even though TPB is considered sufficient and enjoys impressive meta-analytical support, research on the association between intentions and behavior is wanting. Implementation intentions hold potential to shed light upon the intention-behavior relationship, conceptually and empirically. Thus, the purpose of this chapter is to draw attention to implementation intentions for future research to enhance explanation and prediction of when, where, and how some, but not others, enact their entrepreneurial intentions by launching new ventures.
Leon Schjoedt and Barbara Bird
Leon Schjoedt and Vicar S. Valencia
Entrepreneurs employ different resources and strategies in the process of creating new ventures, whether the venture is for profit or not for profit. These differences influence the new venture created. Some entrepreneurs create new-to-the-world ventures by invention or synthesis, whereas others create new ventures by extension or duplication. This means that entrepreneurs may be grouped by how they learn and how they employ their knowledge in the venture creation process. Based on how entrepreneurs learn and employ their knowledge, entrepreneurs may be categorized as entrepreneurial leaders or entrepreneurial managers, which is the topic of this chapter. To this end, the authors contribute to the burgeoning literature on entrepreneurship and leadership by emphasizing the distinction between entrepreneurial leaders and entrepreneurial managers based on their preferred learning style and use of knowledge: essentially, entrepreneurial leaders place importance on knowledge exploration, whereas entrepreneurial managers emphasize knowledge exploitation in the new venture creation process.
Barbara Bird, Leon Schjoedt and Ralph Hanke
Kelly G. Shaver, Leon Schjoedt, Angela Passarelli and Crystal Reeck
Do entrepreneurial ventures involve risk? The quick answer to this question is “well, of course they do!” And there is no shortage of supportive data. For example, the US Panel Studies of Entrepreneurial Dynamics (PSED) Gartner et al., 2004; Reynolds and Curtin, 2009, 2011) shows that as many as 72 months after a business-organizing venture begins, only some 30 percent of efforts have produced new firms. Spending six years trying to organize a company “risks” at least the time and opportunity cost; selling a company for less than the venture-capital raised “risks” the wealth of the investors. But there are at least two important differences. First, investors can take a portfolio approach to try to balance risks and rewards. Individuals, however, typically start only one enterprise at a time, so they stand to lose “all,” not just “some.” Second, investment decisions made by angels or venture capitalists are typically collective decisions, involving the best guesses of multiple brains. By contract, business-organizing decisions are typically made by a single brain. At the present stage of theory and research, the single-brain decisions have been most heavily studied by the methods of neuroscience. Consequently, this chapter restricts its focus to the judgments of risk made by individual entrepreneurs. When the goal is to examine the brain correlates of variations in risk judgments, restricting the investigation to an individual person is merely the beginning. At least four other design elements need to be considered for the final answers to be clear: (1) there must be a conceptual analysis that distinguishes one sort of risk from others; (2) the research designs chosen must maximize the opportunity to obtain meaningful results; (3) the concepts selected for testing must be operationalized unambiguously; (4) potential methodological confounding must be avoided. The present chapter is organized to address each of these concerns in turn to identify practices that might better enable researchers to understand the cognitive neuroscience of entrepreneurial risk.